Correlation Between AK Sigorta and Euro Trend

Can any of the company-specific risk be diversified away by investing in both AK Sigorta and Euro Trend at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining AK Sigorta and Euro Trend into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AK Sigorta AS and Euro Trend Yatirim, you can compare the effects of market volatilities on AK Sigorta and Euro Trend and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in AK Sigorta with a short position of Euro Trend. Check out your portfolio center. Please also check ongoing floating volatility patterns of AK Sigorta and Euro Trend.

Diversification Opportunities for AK Sigorta and Euro Trend

-0.04

Correlation Coefficient

AK Sigorta  Euro Trend

Good diversification

The 3 months correlation between AKGRT and Euro is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding AK Sigorta AS and Euro Trend Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Trend Yatirim and AK Sigorta is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on AK Sigorta AS are associated (or correlated) with Euro Trend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Trend Yatirim has no effect on the direction of AK Sigorta i.e., AK Sigorta and Euro Trend go up and down completely randomly.

Pair Corralation between AK Sigorta and Euro Trend

Assuming the 90 days trading horizon AK Sigorta AS is expected to generate 0.66 times more return on investment than Euro Trend. However, AK Sigorta AS is 1.51 times less risky than Euro Trend. It trades about 0.27 of its potential returns per unit of risk. Euro Trend Yatirim is currently generating about 0.09 per unit of risk. If you would invest  662.00  in AK Sigorta AS on February 4, 2024 and sell it today you would earn a total of  81.00  from holding AK Sigorta AS or generate 12.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AK Sigorta AS  vs.  Euro Trend Yatirim

AK Sigorta AS

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AK Sigorta AS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, AK Sigorta may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Euro Trend Yatirim

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Euro Trend Yatirim are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Euro Trend demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AK Sigorta and Euro Trend

The main advantage of trading using opposite AK Sigorta and Euro Trend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AK Sigorta position performs unexpectedly, Euro Trend can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Euro Trend will offset losses from the drop in Euro Trend's long position.

The idea behind AK Sigorta AS and Euro Trend Yatirim pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.